All posts in supply risk

Procurement As An Insurance Policy?

Think about the concept of insurance. Insurance allows you to recover from the unexpected. If you get into a car accident, car insurance will pay for the repair of your car.  If your home catches on fire, homeowners’ insurance will pay for the replacement of your home.  If you get injured, health insurance will pay for your visit to the…

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Building a Competitive Advantage through a Business Continuity Plan

Special thanks to Source One Management Services for this guest post Building and maintaining a competitive advantage in today’s complex supply chain environment can be a never-ending endeavor.   As customer needs and economic conditions evolve, what once put your company at the forefront of the industry may become your downfall.  Producing a product or providing a service that is superior…

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Supplier Risk Mitigation: Advice From Experts

Sending a big shoutout to Supply & Demand Chain Executive, who featured some extensive quotes from me in their article “Your Supplier’s Risk Is Your Risk.” It’s a truly fantastic article, as it also features some great supplier risk mitigation advice from these other industry experts: Brian Winshall, executive vice president of business development, AFN Logistics Diane Palmquist, vice president of manufacturing…

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Preparing your Supply Chain for the Unexpected

Special thanks to Source One Management Services for this guest post Mother Nature has been giving people qualms for centuries and bad weather can have a significant negative impact on your supply chain. For example, this year, grocery stores found it difficult to stock their aisles with enough canned pumpkin pie filling for their customers – just in time for…

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Risk Mitigation In Any Industry

The Next Level Purchasing Association welcomes this guest post from Heather Grossmuller from Source One Management Services. When it comes to third-party vendors, there is no one-stop solution to mitigating risks. However, there are some key elements that could play a vital role in managing risks more effectively. Take for example Target and Lowes. Both are reeling from data breaches…

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A Buyer’s Introduction To Performance Bonds

Procurement professionals often begin their careers as buyers of goods.  Later, they often find themselves buying more and more services.  Sometime during that transition, they will come across the issue of requiring suppliers to obtain performance bonds as part of contractual relationships. At this point, the buyers will ask:  “What is a performance bond?  When do I know when to…

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Will You Have An Early Warning That Your Supplier Is Going Bye-Bye?

I hope that you have enjoyed the article “How To Spot a Poorly Managed Supplier.” Life works in strange ways when odd coincidences happen. I had the above-linked article queued up for a few months, yet just today, one of our SPSM alumni contacted me asking for some guidance about a situation he was experiencing with an apparently troubled supplier.…

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American Airlines & Boeing: Did A Supplier Labor Issue Scare Off A 50 Billion Dollar Order?

Late last month, American Airlines announced what has been called the “largest aircraft order in aviation history.” Interestingly, it did not single source the order – it split the order of 460 aircraft between Airbus (260) and Boeing (200). There is debate as to exactly why it split this order when, traditionally, airlines purchase aircraft from single manufacturers in order…

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Your Supplier Insurance Clause: What Do You Do When A Supplier Negotiates It?

I hope that you have enjoyed the article “Supplier Insurance Best Practices, Part II.” My goal with this article, as well as Part I and the accompanying podcast, is to give you the tools to effectively select and negotiate supplier insurance clauses independently. If I asked 100 procurement professionals “What do you do when a supplier negotiates the terms of…

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A Crisis In The Beer Supply Chain

I came across a fascinating article on cfo.com entitled “How To Get Beer Across The Border.” This article features an interview with Dan Sullivan, the CFO/COO of Heineken USA. The interview probes a recent “crisis” in Heineken’s beer supply chain. This crisis came about due to the ever increasing popularity of the Mexican Cinco de Mayo holiday in the USA.…

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